Payback period and net present value, Financial Accounting

Payback Period and Net Present Value

XYZ Software, Inc., has the following mutually exclusive projects.

Year

Project A

Project B

0

 $

-9,960   

 $

-10,400   

1

 

6,800   

 

5,800   

2

 

4,100   

 

2,900   

3

 

2,700   

 

6,900   







Requirement 1:

(a) What is the payback period for Project A?

  Payback period                                 years

(b) What is the payback period for Project B? (Round your answer to 3 decimal places. (e.g., 32.16))

  Payback period                                 years

Requirement 2:

(a) What is the NPV for Project A assuming a discount rate of 14 percent? (Negative amount should be indicated by a minus sign. Do not include the dollar sign ($).

  Net present value         $

(b) What is the NPV for Project B assuming a discount rate of 14 percent? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.

  Net present value         $

Posted Date: 2/15/2013 3:06:33 AM | Location : United States







Related Discussions:- Payback period and net present value, Assignment Help, Ask Question on Payback period and net present value, Get Answer, Expert's Help, Payback period and net present value Discussions

Write discussion on Payback period and net present value
Your posts are moderated
Related Questions
prepare an balance sheet

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2013 ($ in 000s): sales revenue, $

t account for equipment beg, bal 80,000 disposal 22,000 acquisition-41,000 end bal. 99,600 acct. depreciation equip. disposa; 8,500 beg, bal 41,500

Variation of securities It would seem logical to carry out a strict apportionment between income and capital every time investments are bought or sold. If this were done, it wo

Accounting concepts The word 'Accounting Concept' is used to denote necessary assumptions and ideas which are basic to accounting practice. The variety of accounting concepts i

The following figures are taking from the book of Sheen Compnay limited as on december 31,2009 DEBIT SIDE : opening stock Rs 75000 purchases 245000 wages 30000 c

Ask questihow to make comparative income statement in good formon #Minimum 100 words accepted#

A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporate bond has a yield of 9%. Suppose that the liquidity premium on the corporate bond is 0.8%. What is th

I would like you to take the second set of data from session 8 (the one you worked with in the first participation exercise) and do the following: 1.  Determine the number of gr

What is bargain purchase? Financial assets acquired for less than FMV. In a bargain purchase BC, a corporate entity is acquired by another for an amount that is less than the